During the first quarter of 2024, Apple (NASDAQ: AAPL) was something of a stock market laggard, at least when compared with the performance of other big tech firms such as Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA).
May, however, brought a major change, and AAPL shares have significantly accelerated their advancement thanks to multiple factors, including strong figures in China and the planned integration of artificial intelligence (AI). By press time, Apple stock is hovering near their all-time highs (ATH) above $230.
Furthermore, should Apple’s own assessment prove true, the company’s stock could skyrocket to unprecedented highs by the end of 2024, both in the leadup to its next earnings reports and after they are published, possibly hitting its most bullish 12-month price target of $300 ahead of schedule.
Why Apple stock can rise above $300 before the start of 2025
Indeed, reports from late August indicate that the technology giant ordered the production of iPhones to be increased by 10%, signaling its expectations that demand will be notably greater in the wake of the imminent AI iOS integration.
Additionally, it is rumored that Apple is considering a $20 subscription fee for some of its artificial intelligence functionality.
Given that iPhone sales already account for just over 50% of the blue-chip’s revenue, a 10% increase in smartphone sales could massively increase the firm’s quarterly revenue. Such a positive revenue – particularly when paired with the ongoing AI hype – is more than likely to translate into large stock market gains.
AAPL shares could also benefit from factors outside the company’s control as the Federal Reserve (FED) is expected to begin reducing interest rates following the September Federal Open Market Committee (FOMC) meeting – an action set to benefit the entire stock market unless it has an immediate and catastrophic impact on inflation.
Analyst predict major gains for AAPL stock in wake of AI integration
Some of the most prominent stock market analysts also appear very optimistic about the upcoming Apple upgrades as, for example, Wedbush’s Dan Ives explained he believes they will kickstart a new phase in the artificial intelligence supercycle.
Loop Capital’s Ananda Baruah appears to concur as he not only assigned the Street high price target of $300 in July 2024, but also justified primarily with the growth potential stemming from generative AI integration.
Apple stock price chart
Whatever the upcoming updates and upgrades bring, it is safe to say that, by September 2024, AAPL shares have been having a very strong year.
After moving sideways in the first quarter, the stock is, by press time, up 23.36% in the year-to-date (YTD) chart, and Apple price today stands at $229.
AAPL stock YTD price chart. Source: Finbold
The last 30 days have been particularly strong, with AAPL both recovering from the early August slump and continuing its upward momentum, which started in May, to rise 9.43% within the time frame.
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